KPMG Report Update: Transit - Lethbridge

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KPMG Report Update:Transit April 27, 2020

KPMG’s Key Findings

**Excerpt taken from PG 6 of the KPMG Report

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Transit- KPMG Opportunities

**Excerpt taken from PG 12 of the KPMG Report

Council Resolutions School BusesJanuary 27, 2020

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Council Resolutions Access-A-RideNovember 25, 2019

Council Resolutions On Demand TransitNovember 25, 2019

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Implementation Roadmap(page 232 of KPMG Report)

1. Assess, accept and refine the opportunities2. Validate and refine the expected benefits3. Charter a program4. Establish a governance structure and allocate a budget for its

implementation5. Develop an action plan

Project Management Approach

Initiate• Continuous Improvement Opportunities• Role Clarity• Why are we doing this?• What does success look like to you?• What do you foresee the biggest challenges will be?• Change Management Approach

Plan• Project Charters• Task Breakdowns• Schedules• Understand Current Transit System• Stakeholder Analysis• Risk Registers• Relationship Building• Communication with Staff

Execute *Current Stage*• Research other properties• Simulate and develop options• Engage additional resources as required

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Recommendation Implementation Framework

STAGE 1: Validation

• Examine Assumptions

• Check for special causes and further normalize comparators

• Refine Estimated Cost Savings and other benefits / costs

• Understanding of comparator’s practice

• Consider other non‐quantifiable benefits / community impacts

Output

• KPMG Assumptions Summary

• Additional Assumptions

• Stakeholder Analysis

• Refined Savings Estimate and benefit/impact.

• Clarified objective and scope

• Recommendation Validation Document

STAGE 2: Develop Options

• Establish the range of possibilities

• Consider Implementation Investments Required

• Evaluate non financial benefit, impact (include LOS) and risk.

• Consider collateral effects, potential consequences beyond business unit

• Consult Stakeholders as appropriate

Output

• Options Presentation to SMT

• Option Summary Sheets

STAGE 4: Implementation

• Grouping of recommendations into Org Change Projects

• Change Project Scope

• Change Project Plan

• Stakeholder Engagement

• Implementation Activities

Output

• New Mandate, Policy, or Process or Work implemented

• Budget Changes

• Changes operationalized

• Lessons Learned

STAGE 3: Direction

• SMT reviews decision Options by Recommendation

• Administration – Report to Council

• Options to Council with Recommendation

• Options to Council

Output

• Request for Decision (Council or SMT)

• Council Resolution or SMT Direction

• Selected Option

• Inputs into implementation plan

Recommendation Validation

Options DirectionImplementationChange Project

Project Planning• Charter• Objectives• Scope• Deliverables• Milestones• Schedule

PlanApproval

City of Lethbridge Conventional Statement of Operations Budget 2020

Sales of Goods and Services Revenue $ 3,025,530.00

Operating Expenses $ 3,913,963.00 Lifecycle (Transfer to Capital) $ 174,700.00 Wages & Benefits 71% of expenses $ 9,906,873.00 Total Expenses $ 13,995,536.00

Excess of Revenue over Expenses $ (10,970,006.00)

**Budget numbers taken from PG 112 of 2019‐2022 Operating Budget. Excludes grants, asset transactions and reserve transfers which net $40,800

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City of Lethbridge Statement of OperationsConventional Transit Budget 2020

Operating ExpensesShop Supplies $269,763 7.13%Parts $1,010,600 26.70%Fuel $1,614,300 42.65%Training $38,000 1.00%Uniforms $74,800 1.98%Contractual Services $164,700 4.35%Technology $182,700 4.83%Interdepartmental $397,200 10.50%Bank Service Charge $8,500 0.22%Phone $14,000 0.37%Membership $10,000 0.26%Other $129,400 3.31%Total $3,913,963 100.00%

City of Lethbridge Statement of OperationsConventional Transit Budget 2020

Operating Hours (5:30AM‐ 12:00 AM) Bus hours per day 18.5Average number of buses used per hour Based on weekdays 21

Total expense per bus Based on 21 buses $ 666,454.10 Daily operating and wage expense per bus Based on 364 days $ 1830.92Hourly operating and wage expense per bus Based on 18.5 hours/day $ 98.97

Annual Revenue $ 3,025,530.00 Annual Ridership 2019 1,485,889Ridership revenue per ride $ 2.04

**Budget numbers taken from PG 112 of 2019‐2022 Operating Budget. Excludes grants, asset transactions and reserve transfers which net $40,800

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Conventional Transit Cost Savings

Change the Financial Impact

1. Increase efficiencies Operational exercise

2. Cost Savings with a service reduction2 hours per bus per day= 10 buses

during the last 2 hours of the day$ 720,490.91

3. Cost savings with average bus per day reduction 6 Buses per day $ 3,998,724.57

DISCLAIMER: The numbers presented are for illustrative purposes only, actuals may vary as a result of implementation and further review from pilots.

Transit On Demand

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Defining Transit On Demand

• Advanced technology is used to book rides

• Allows service in areas where traditional fixed route transit is not financially viable

• Provides public transportation opportunities to increase ridership

• Allows to expand service area coverage

• Provides transit properties the ability to be more flexible (dynamic routing)

Transit On Demand Is Not

• Door to door service

• Dial‐A‐Ride (followed a fixed route service)

• A taxi or Uber (picks up and drops off at your destination)

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On Demand Market Research• Researched 7 different transit properties and 2 software providers

• Purpose of On Demand:o Increase ridership

o Targets areas with low ridership

o Targets new developments not large enough to support conventional transit

• No On Demand program is run the same:o Vehicle types

o Software

o Pick up locations

o Frequency

• Customers value flexibility

• Compliments existing conventional transit and encourages ridership growth

• Transit properties did not implement for cost savings

2019 Ridership Profile After 7:00pm

Adult48%

U‐Pass31%

Student7%

Youth6%

Senior6%

Child1%

Other1%

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Transit Master Plan

• Coverage vs ridership model (hybrid)

• Straight and direct routes

• Frequency (rapid transit)

• Modifications to service standards

“CITY LINK”Connecting our community with convenient and frequent transit service

Scenario 1East Lethbridge City Link Route + Transit On Demand

(weekdays after 7:00pm)On demand area

Note: 10 On Demand buses with hardware and software

Current Service Hours 23.47

TOD Bus Hours Required 13.00

Hours Saved Per Day 10.47

Number of Days Operating 249.00

Annual Hours Saved 2,607.03

Operational Cost / Hour $98.97

Ongoing Gross Operational Savings $258,018

Annual TOD Operational Costs $125,000

Ongoing Net Operational Savings $133,018

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Scenario 2East Lethbridge City Link Route (frequency after 10:00pm from 30 min to 1 hr)

+ Transit on Demand (weekdays after 7:00pm)

• 75% of trips are done on the City Link route• Small changes on route configuration are required• City Link route changes to hourly service at 10:00 PM

On Demand area











Scenario 3West Lethbridge City Link + Transit on Demand

(weekdays after 6:45pm)


*75 additional bus stops required $225,000










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Savings Summary

ONE TIME COSTS

ITEM COST

Pilot Project $40,000 Tablets $18,000 Mounting Brackets $24,000 Marketing $10,000

TOTAL COST $82,000

Note: West Side City Link option(s) require $225,000 one time accessible bus stops

SCENARIO

ANNUAL HOURS SAVED

ONGOING GROSS

OPERATIONAL SAVINGS

ONGOING COSTS

ONGOING NET

OPERATIONAL SAVINGS

1 East Lethbridge City Link + TOD (weekdays after 7:00pm) 2,607 $258,018 $125,000 $133,018

2East Lethbridge City Link (frequency after 10:00pm from 30 min to 1 hr.) + TOD (weekdays after 7:00pm) 3,603 $356,592 $125,000 $231,592

3 West Lethbridge City Link + TOD (weekdays after 6:45pm) 2,490 $246,435 $125,000 $121,435

COMBINATIONS (East & West Lethbridge)1 & 3 5,097 $504,453 $250,000 $254,453 2 & 3 6,093 $603,027 $250,000 $353,027

ONGOING ANNUAL COSTS

ITEM COST

Tablets (Life Cycle) $5,000

Licenses $120,000

TOTAL COST $125,000

*License costs are approximately $1000/bus/month

Further savings can be accomplished by a reduction of service levels:

• Increase walk distances• Decrease frequency• Decrease hours of operation

Transit On Demand Summary

Recommendation: Transit On Demand in conjunction with City Link

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Accessible Transportation

Access-A-Ride is• A paratransit bus service for people with a disability which inhibits them from

riding accessible conventional transit• Accessible door to accessible door service• Shared ride, multi stop service• Last year 17,341 of our total trips (119,768) were unshared due to special

circumstances

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2019 Ridership Profile Trips by Booking Purposes

PROGRAM33%

SOCIAL17%MEDICAL

11%

SD5110%

OTHER9%

DIALYSIS8%

BRIDGES6%

WORK4%

HOLY SP2%

Subscription vs. Demand

SUBSCRIPTION TRIPS62%

DEMAND TRIPS37%

SAME DAY TRIPS1%

Access-A-Ride is Not

• A taxi service

• For people who drive

• For people who can ride conventional accessible transit

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Accessible Conventional Transit is

Bus service provided within the City of Lethbridge for people of all abilities:

100% accessible fleet

Next stop annunciators on every bus, for the visually or hearing impaired

Two designated wheel chair locations with securement on each bus

KPMG Market Research PropertiesMost Comparable Comparable Less Comparable Least Comparable

Thunder Bay Sarnia Milton St. Albert

Regina Brantford Toronto Strathcona County

Medicine Hat Translink Rocky View County

Guelph Leduc

Grande Prairie Airdrie

Calgary AccessSaskatchewan Abilities Council (small properties

combined)

Edmonton DATS

HANDYDART (Kelowna,

Victoria and BC)

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Market Research Operational Findings

• Count Service Count%

Door 2 Door 17 81.0%

Curb 2 Curb 2 9.5%

Neither 2 9.5%

Total 21 100%

Pick Up Window Duration

Count %

10 minutes 1 5%

15 minutes 1 5%

20 minutes 6 29%

30 minutes 9 43%

N/A 4 19%Total 21 100%

No Show Waiting Period

Count %

3 minutes 2 9%

5 minutes 8 38%

10 minutes 1 5%

N/A 10 48%

Total 21 100%

Eligibility Count %

Municipalities With Eligibility Criteria

21 100%

Total 21 100%

All similar “Transportation for people with a disability who cannot ride Conventional

Transit”

Transit Master Plan Concepts Utilized• Defined the purpose of Access‐A‐Ride

o Transportation for people with disabilities who cannot use conventional service

• Revised User Guide – 2019

• Travel training – accessible conventional transit

• Education and training – Access‐A‐Ride

• Enforcement of no shows

• Continuous stakeholder engagement

• Development of performance indicators

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Eligibility Criteria

• Enhance current eligibility with clearly defined tier system

o Unconditional

o Conditional

o Temporary

• Applicants may be subject to the following requirements:

o In house/ On site interview

o Contracted/ Professional independent assessment

Strategy 1:Reduction of Access-A-Ride Service

Trips/Capita Hours Buses

Current 1.2 52,127 21

Trips/Capita Hours Buses Reduction

Option 1 0.7 30,400 12 42%

Option 2 0.45 19,600 8 62%

Legal Concerns and Implications

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Strategy 2:In House or Contracted Interview/Assessment Process

• In house interview process

OR

• Professional contractor (Occupational Therapist)

• Process involves physical, cognitive, sensory and other assessments to determine eligibility for appropriate transportation service

• All applicants will be accepted as either an accessible conventional transit client or Access‐A‐Ride client

• Professional contractor lowers the risk of liability for the City

Interview/Assessment Count %

On‐Site 4 19%

Contracted 14 67%

No Process 3 14%

Total 21 100%

Recommendation Moving Forward

• Setting eligibility requirements with a tier system

• Contracting a professional contractor to determine eligibility

• Engage with Alberta Health Services, programs, facilities, and school boards in regard to sharing the responsibility of transportation

Aligning with the Transit Master Plan and KPMG ReportOpportunities to lessen the stress on service levels adding value to the community

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School Bus Transition Update• Transit management and administration has determined all tasks required

for the City to complete transition

• Transit has removed City of Lethbridge Decals on 18 buses to date

• Met with school divisions to review tasks required

• School divisions are currently working on a feasibility study to determine how to operate school buses

• City will meet with school divisions this summer to determine appropriate schedule for transition

Council Input and Direction Required

On Demand Transit:• Do you want to proceed with resolution to run a pilot program?

• Which scenario?

Access‐A‐Ride:• City Council to determine which strategy to pursue

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Questions?

Documents

KPMG Report Update: Transit - Lethbridge